Royal Mail warns on lower parcel revenue as competition bites

Published 2:41 AM ET Tue, 22 July 2014
Reuters

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Britain's Royal Mail Group said it would have to rely on cost control measures and letters sales to meet full-year expectations after rising competition meant parcels revenue would be lower than anticipated.

The postal operator, sold off to much controversy last October in Britain's biggest privatisation in decades, said on Tuesday group revenue for the three months to June 29 had risen 2 percent, led by a better-than expected performance in its letters arm.

UK letter volumes declined 3 percent but revenues rose by the same amount thanks to price increases, however volumes for UK parcels, a key focus for the firm, grew by just 1 percent and revenue declined by 1 percent.